Market Infrastructure
In an increasingly interconnected and complex financial world, efficient market infrastructures are essential for the smooth functioning of financial markets. Our market infrastructure consulting supports companies in optimizing their systems and processes to meet both current and future requirements. With in-depth expertise and leveraging years of experience, we support you in navigating regulatory challenges, integrate innovative technologies, and build a sustainable infrastructure. Rely on our knowledge to make your market infrastructure future-proof and efficient.
DLT & Digital Assets
Distributed Ledger Technology (DLT) is changing daily business for capital markets. To maintain a competitive edge, financial service providers must create and develop new services while maintaining their established role in the market.
Our offer supports a wide range of interconnected areas to embrace the adoption of this new technology and unlock its potential for new markets and service offerings, from definition of strategic positioning & use cases to support for compliance with related regulatory requirements and applicable licensing process as well as in concrete stages of the technical implementation.
Regulatory & Compliance
Our services cover the entire spectrum of regulatory assistance. We support clients from the initial screening of requirements into business processes, all the way through to specific documentation and license applications. We help to identify risks, minimize them and optimized your business processes.
Transformation processes & Token solutions
Our offers for transformation processes and token solutions include holistic support for the respective project steps. From the analysis of existing business processes and systems, through the identification of functional requirements, up to the implementation of the desired solution, we offer comprehensive support delivered by our experienced team, which also includes testing and the documentation of all implemented processes and standards.
Strategy & Use Cases for DLT & Crypto Assets
We offer support at every step of your digital asset journey. From use case analysis with following strategy development, to implementation, compliance and a proof of concept, we provide comprehensive and customized solutions that also take your specific requirements into account.
Strategic Positioning & Use Case Development
We offer our support in the first steps of your institution’s digital assets journey:
- Use Case Analysis: Strategic analysis of business cases encompassing considerations such as competition, strategic advantage, and alignment with your company’s business model to transparently outline the best product and service offerings within the DLT landscape.
- Operating Model & Market Entry: Development of operating model and market entry solution, tailored to the company’s specific requirements to ensure optimal market positioning.
- Regulatory Screening: Extensive regulatory expertise to conduct a first assessment of regulatory environment for selected use cases and define concrete requirements to comply with each regime.
- Technology Screening: Technical expertise to provide tailored advice on the optimal underlying blockchain technology and choice of platform to successfully implement identified use cases.
- Proof of Concept: Conduct an LPA supported prototype phase of the new product.
- Maturity Assessment: Careful evaluation of results from test phase and presentation of a comprehensive maturity assessment.
Regulatory Compliance & Licensing
The current regulatory landscape for Digital Assets is particularly fragmented and challenging to navigate:
- MiFID II aims to harmonize European financial markets and improve investor protection. The DLT Pilot Regime offers a Sandbox Environment to develop the supply chain for DLT instruments.
- MiCaR targets financial stability and market integrity to regulate the introduction of Crypto Assets.
- In Germany KWG (“Kreditwesengesetz”) and eWpG (“Gesetz über elektronische Wertpapiere”), among others, provide a further framework from issuance to custody within the European regulatory context.
Transformation processes & token solutions
We offer support in different areas of the DLT adoption journey including:
- Setup of custody systems for digital assets (e.g., crypto currencies).
- Support in development, choice of suitable technology and network infrastructure.
- Backing in general transformation processes.
Our services cover the main stages of the implementation process chain towards the final go-live, among others:
Business analysis
Through analysis of current business processes and system landscape to gain a comprehensive understanding of the organization to help defining the scope ot the next steps in the implementation journey.
Requirements Management
Definition of the functional requirements to translate abstract business requirements into concrete implementation steps.
Test Management
Development tailored test strategies and execution of various test phases to ensure the correct implementation of requirements.
Documentation Management
Documentation of all processes, standards, and regulatory documentations.
ESG
We strive to help businesses navigate the complex world of environmental, social, and governance (ESG) practices. Our goal is to help you identify and mitigate ESG risk, while creating opportunities for growth and differentiation.
Meeting the unique needs of your business is our priority, whether you are just starting out or have already implemented ESG practices.
Our end-to-end service provides you with solutions for risk, regulation, derivatives, treasury, and trade and export finance.
ESG Regulation
ESG compliance including guiding principles, regulatory initiatives, and standards.
ESG Risk
ESG risk including risk impact assessment, readiness checks, ESG data solutions, and new product integration.
ESG Derivatives
ESG-linked derivatives development including solutions for avoidance, reduction, and compensation of carbon emissions.
ESG Treasury Services
ESG strategy development benchmarking ESG performance, and improving treasury policies and processes.
Trade & Export Finance
ESG trade and export finance strategies assessments, ESG or green product design, processes optimization, and business architecture and data solutions development.
Settlement Efficiency
Buy-side and sell-side firms rely on an efficient and secure settlement market without risk and latency. Despite recent regulatory initiatives, the post trade market is still not frictionless.
Regulation compliance
With our significant experience in the post-trade sector, we help our clients to comply with CSDR.
Strengthening businesses
We support market participants with reviewing their settlement efficiency with respect to multiple areas, including counterparties and products
Process automation
With our CSDR tool, we can make the post trade processes more secure by automizing cash penalties, calculations and forecasting.
Risk services
At LPA, we support you with various aspects of risk management, ranging from strategy and model development to regulatory requirements.
Risk management is a core functionality for all financial institutions. While some risks are well-defined and regulatory driven, others surface unexpectedly. This is due to dynamic technical and business environments, where various risks, including cyber risk, for example are developing rapidly. Financial institutions are therefore required to be adequately equipped to better identify risk, navigate new risk, and evaluate how risk can be best managed on a company-wide basis.
Our risk and portfolio engines measure and quantify different risks and can sustainably insource your current risk functions. We remain at the forefront of innovative risk management through building and implementing Standard or AI-driven models, new risk approaches, and more.
We cover the entire spectrum of risk support. In recent years, we have focused on the following regulatory, quantitative, and qualitative topics.
Risk services
- Digital risk transformation (24/7 lombard loan modelling)
- Risk change (Basel 4)
- Strategic risk management
- Risk culture and governance
- Capital management, optimization, and planning
Risk services
- Market risk (FRTB-SA, FRTB-IMA, IRRBB, FX risk and automated FX hedging)
- Interest rate risks (IBOR reform)
- Credit risk (risk change, capital management, SA-CCR, CVA, CXA, model enhancements, AI model upgrade)
- Operational risk (resilience, data management, governance, standard approaches)
- Liquidity risk (LCR, NSFR, or ILAAP)
- Enterprise risk management (aggregation, integration, and allocations)
Risk services
- ESG risk management (reporting, gap analysis)
- Model validations and development
- Independent pricing services (linear and non-linear products for over 70 derivatives)
- Clearing and collateral reforms
Business Transformation & Strategy
Market infrastructure providers are highly regulated. They compete globally to provide cost-effective, efficient, and scalable trading and settlement services across asset classes, and deliver measurable value to their clients along the value chain. Challenges such as fintech partnerships and M&A activities, as well as the selection of adequate technology and standardization play a central role.
As market leader with over 250 clients, we maintain onoing contact with our clients and fully understand the challenges faced by clients. Our extensive market overview positions us a valuable partner for market infrastructure providers.
Services
- Business model and business case
- Competitor analysis
- Make or buy
- M&A and partnerships
- Outsourcing and insourcing
Implementation
- Program and project management
- Test management and test automation
- Waterfall and agile
- Business and technology analysis
- Roll-out management
Get in contact
Want to know more about our Consulting Services? Then simply contact us. Our team of experts will be happy to help you and look forward to hearing from you.